Is Your Company Profitable? (Part 2) | Management Analysis

Hello, everyone.

This is Enta.

This is a continuation of my previous post.

Deficit

Last time, in 1,A Company Made Up Only of PeopleI gave it some thought.

Is Your Company Profitable or Not? (Part 1)

This time, it's number 2.

1. A company with only human employees (slope stabilization work only)

2. Personnel and a complete set of spray equipment

3. Personnel, Spray Equipment, and Construction Management

4. Construction management only

 

2. Personnel and a complete set of spray equipment

This is a common type of company.

 

The typical pattern for this company is that, as a company staffed solely by people, it gradually saves money and builds up its credit, and as a result, begins to purchase machinery.

It seems that a company with just one employee has gradually started receiving more work requests from other companies.

 

Once you've been at it for a while, your name will naturally become better known.

Once that happens, you’ll start getting offers from other major companies (prime contractors) as well.

But there are some mean employees at big companies who threaten you, saying things like, “If you go to another big company, you’ll be banned from our place!” lol

And the projects run by people like that don't make any money, and there's a high chance they'll get haggled down as much as possible lol (Am I being biased??)

 

First, I think I'll probably buy a complete spray painting kit.

Spray Machine + Batching Machine + Sand Hopper (plus a concrete mixer, if necessary)

To give you a rough idea, the cost of this machine—excluding the Belcon—is about 5,000 yen per day.

I think you're probably wondering, "Will I be able to write it off over five years?"

Spray Machine

This daily machine fee of 5,000 yen does not include maintenance charges.

Therefore, assuming a total expenditure of about 1 million over the course of a year, that’s an additional 2,100 yen.

We'll also load the leased generator and compressor onto this.

Let's be generous here and add 4,000 yen.

 

Costs Associated with Spraying Using a Spray Machine

One spray machine set: 5,000 yen

Maintenance fee: 2,100 yen

Equipment Rental: 4,000 yen

Fuel cost: 11,000 yen

Machinery Storage Fee: 8,000 yen

Total: 30,100 yen

—————————————————–

This is the minimum daily cost. (Based on 25 operating days)

The spray machine set is a bit pricey since it’s depreciated over five years, but you really need at least this much to feel motivated to run your own business, lol.

 

In particular, if you own machinery, you’ll incur fixed costs even when you’re not spraying.

The fixed costs for a complete spray machine set include storage space.

The storage space for this machine is actually more expensive than I thought, isn't it?

Transportation of Enta Spray Machines

Sales will gradually increase from the moment you start using the machine.

On the other hand, however, costs for machine maintenance and transportation are starting to add up.

This is a time when not only your workload increases, but your expenses do as well. You’ll find that money is slipping away in ways you might not even notice.

If it's a company with only one team, there might be a period when it's a bit difficult to run things.

 

However, since sales increase the less time the machines are idle, it becomes possible to secure sufficient profits even with just one shift, so there are a great many companies of this type in our industry.

I think companies with three or more teams, in particular, will be profitable.

I suppose there are job sites with good conditions and others that aren't, but

On average, it’s almost impossible not to make a profit.I think so.

 

Now that I've written this far, I just realized I forgot to record the office expenses from last time, so I'll just move forward without including any office expenses for now lol.

With this company (Team 1), I believe the administrative staff member is a relative, and since the bookkeeping will be done from home, I don’t think it will cost that much, but please expect administrative personnel costs and office expenses to add up to just under 9,000 yen.

 

See you later.

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